Delays

84-4-109. Delays. (a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify, or extend time limits imposed or permitted by this act for a period not exceeding two additional banking days without discharge of drawers or endorsers or liability to its transferor or a prior party. (b) Delay by a collecting bank or payor bank beyond time limits prescribed or permitted by this act or by instructions is excused if (1) the delay is caused by interruption of communication or computer facilities, suspension of payments by another bank, war, emergency conditions failure of equipment, or other circumstances beyond the control of the bank, and (2) the bank exercises such diligence as the circumstances require. History: L. 1965, ch. 564, § 208; L. 1991, ch. 296, § 79; February 1, 1992. KANSAS COMMENT, 1996 This section is identical to the 1995 Official Text except that the lower case roman numerals have been replaced by arabic numerals. Subsection (a) was amended to remove checks from those items on which a bank can delay collecting or dishonoring in a good faith attempt to obtain collection. The effect is that the automated and rapid processing of checks is required. Otherwise, it is substantially the same as the former 84-4-108. The other amendments are primarily stylistic. Subsection (a) permits a bank to grant a limited extension of the time limit in which items, other than checks, must be handled under Article 4. Subsection (b) excuses delay on all items for the enumerated reasons. "Interruption...of computer facilities" and "failure of equipment" are newly enumerated excuses for delay. The former 84-4-109 definition of the "process of posting" has been deleted because of the difficulty in applying its terms and the role of "intent." The intent test has been replaced by time limits. The effect of the deletion is to adopt the effect of the infamous cases of West Side Bank v. Marine National Exchange Bank, 155 N.W.2d 587 (Wis. 1968), which held that the process of posting was not completed until the midnight deadline because the drawee retained the right to "correct or reverse an item until the midnight deadline" under the former 84-4-109(e). All payors will now have this option. Revisor's Note: In 1991 former section 84-4-109 was repealed and the number reassigned to former section 84-4-108.